Product Basics
This is defined as a good, service or idea that is bought and sold.
What is a product?
This is a picture, design or graphic that represents a brand.
What is a logo? (or brand mark)
This is the amount of money requested or exchanged for a product
What is price?
This strategy combines 2 or more goods or services for one price.
What is bundling?
Advertising a low priced product with the intent to push customers towards a more expensive one.
What is bait and switch?
These are physical items, while services are activities performed by others.
What are goods?
A statement that tells customer what they can expect from a company's products.
What is a brand promise?
This occurs when revenue equals total costs.
What is the break-even point?
Setting prices to end in .99 to create the perception of a bargain is called this.
What is odd pricing?
When 2 or more companies agree to see a product at the same high price.
What is price fixing?
Name one of the four characteristics that makes services different from goods.
What is intangible, inseparable, variable or perishable?
Customer dedication that leads to repeat purchases and strong brand relationships.
What is brand loyalty?
This pricing method doubles the cost of a product to determine the base price.
What is keystone pricing?
This strategy sets high prices to create an image of quality and status.
What is prestige pricing?
Government set maximum prices during shortages are called this.
What are price ceilings?
These products are purchased after comparing price, quality and style in multiple stores.
What are shopping goods?
This branding strategy uses an established brand name on new products within a product mix.
What is brand extension?
Demand in which a change in price leads to a greater % change in demand.
What is elastic demand?
Charging low prices for a base product but high prices for necessary components.
What is captive pricing?
Setting extremely low prices to eliminate competition is called this.
What is predatory pricing?
When most customers who want and can afford a product have already purchased it, the market is described as this.
What is a saturated market?
This legal protection safeguards names, taglines and graphics used to identify a product.
What is a trademark?
Net profit after taxes divided by total assets is used to calculate this.
What is Return on Investment (ROI)?
A 2/10, net 30 discount is an example of this type of B2B pricing strategy.
What is a cash discount?
An example of a price floor (minimum prices set by the government) would be this.
What is minimum wage>?